Daybase Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
DAYBASE is a workspace franchise operating flexible neighborhood coworking spots for remote workers. Franchisees run the locations, managing memberships, facilities, and day-pass bookings.
FranchiseVerdict summary · 2026
A DAYBASE franchise requires a total initial investment of $1.3M – $1.7M, including a $50K franchise fee and an ongoing 7.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $1.3M – $1.7M
- 65th pct Business Serv…
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 7.0%
- 16th pct Business Serv…
- Units
- 0
- 0th pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.3M – $1.7M including a $50K franchise fee, 7.0% ongoing royalty.
- RETURNSStart-up franchisor formed May 6, 2021; audited statements cover inception (May 6, 2021) through December 31, 2021. Revenues were $0 with a net loss of $130,280. Only one period of audited financials available.
- RISKVerdict D (Below average), verdict score 36/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Daybase Franchising, LLC
- Parent company
- Daybase, Inc.
- CEO title
- President and Chief Executive Officer
- Joel Steinhaus
- CEO experience
- 14 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 335 Madison Avenue, 3rd Floor, New York, New York 10017
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
- CEO
- Joel Steinhaus
- Headquarters
- NY
- Founded
- 2021
- FDD year
- 2022
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 433% above the typical business services franchise.
Source: FDD 2022 · Items 5–7
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $105K | $110K |
| Equipment, build-out, other | $1.1M | $1.6M |
| Total initial investment | $1.3M | $1.7M |
Source: DAYBASE 2022 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.3M – $1.7M
- Middle of category vs category
- Liquid capital req'd
- $105K – $110K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 7.0%
- formula · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $1K |
| Training fee | $5K |
| Transfer fee | $40K |
| Renewal fee | $5K |
| Inventory (initial) | $5K – $8K |
| Total fee load | 10.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
DAYBASE did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one DAYBASE unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
6%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
Start-up franchisor formed May 6, 2021; audited statements cover inception (May 6, 2021) through December 31, 2021. Revenues were $0 with a net loss of $130,280. Only one period of audited financials available.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 10.0% — below the Business Services average of 11.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Multi-unit rate
Only 5% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services averages
How Daybase Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
- Multi-unit owners
- 5.0%
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
DAYBASE presents extreme risk: zero operating franchises, going concern status, undisclosed financials, and a $1.7M+ investment in an unproven model with no comparable unit performance data.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 36 / 100 verdict
- 01HIGHGoing Concern status indicates financial instability or viability questions at franchisor level
- 02MINORZero existing franchise units suggests brand has never successfully scaled or is in early/failed launch phase
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and suggests poor unit economics
- 04MINORHigh initial investment ($1.25M-$1.7M) with unproven profitability model creates severe financial risk
- 05MINORRoyalty structure tied to 'Workspot's Gross Revenue' is non-standard and suggests unclear or dependent business model
- 06MEDNo disclosed unit growth history raises questions about market viability and franchisee retention
- 07MINOR10-year term locks franchisee into unproven concept with no performance track record
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 30 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Within 10 miles of New York, New York (franchisor's principal business address) |
| Jury trial waiver | Yes |
| Governing law | NY |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 0 hrs
- Training location
- New York, New York (or virtually or at another designated location)
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisor (via designated Project Manager)
- Franchisor financing
- Not offered
- Item 10
- POS system
- DBTech
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: DBTech
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
DAYBASE · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a DAYBASE franchise?
The total investment to open a DAYBASE franchise ranges from $1.3M – $1.7M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do DAYBASE franchise owners earn?
DAYBASE does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the DAYBASE FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the DAYBASE FDD and qualifies whose outlets they describe.
What is DAYBASE's franchise failure rate?
SBA 7(a) loan charge-off data is not available for DAYBASE (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
Is DAYBASE a good franchise to buy?
FranchiseVerdict rates DAYBASE as a D-grade franchise with a verdict score of 36 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent DAYBASE, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.